A Beginner’s Guide to Investments

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If you are trying to get your head around the notion of investing, you’ve come to the right place. There is an overwhelming amount of information out there, so for an investment novice, it can seem a rather daunting experience.

This beginner’s guide to investing is designed to get rid of all that speculation and noise and get down to the real nitty gritty, back-to-basics, crux of investments!

What is an investment?

According to the Cambridge Dictionary, an investment is “the act of putting money, effort, time, etc. into something to make a profit or get an advantage.”

Essentially, when we are talking about finance, people invest in an asset or item with the hope they will benefit from its financial growth, or what is more commonly called a return. Investing is a tool for building wealth. In fact, investments are seen as one of the most profitable ways to build long-term wealth. However, you can equally lose money through investments if it is not monitored or managed with the right knowledge, information and, in some cases, luck.

Types of investments

Although many people find themselves investing in properties, investments don’t just come in the form of a physical asset. There are many different types of investments, such as:


If you are putting away a certain amount of savings into your bank account each month, you are already ‘investing’ in your money. You can also invest your money through foreign currency exchange rates, bonds and investment funds.


When you buy a ‘share’ of a company, or invest in a company’s stock, you own part of that company. This is called equity shares. Resultantly, if the company’s value increases, so does your share of the company. You can also bet on shares losing or gaining value.

Tangible assets

Investment properties, land, commodities, art and antique collectibles; people can invest in all sorts of physical assets! While some of these items will materially depreciate, their value and worth is often a profitable asset.

Should I start investing?

Investing in your money may sound like a great idea (who doesn’t want to benefit from a nice big financial return?), but before you decide whether or not you should invest, there are a number of things to consider.

You need to reflect on your current situation and identify your short and long term financial goals. Be sure to fully understand your net worth, cash flow, debts, pension and income protection. It is also important to exercise financially healthy habits and diminish any behaviour that may be holding you, and your bank account, back.

Make sure you spend time understanding the risks, rewards and fees involved in investing. You don’t want look at a stock, see the number is rising, and throw all your money into it. To make your money work for you, you need to have the knowledge behind you, as well as be in the right mindset and prepared for an opposing outcome (say you lost your job – what then?).

With a bit of swatting, the right financial support and a thoroughly thought-out plan in place, making an investment could lead you and your family to a healthy and secure financial future.

I’m ready, where do I start?

Taking your first steps into the world of investments is exciting! If you think you are in a good financial and psychological position to begin investing in your money and you would like to find out more about your options, you can contact one of our expert financial advisors who will assist you in recognising and making healthy decisions with your money.

Call us on 1300 784 084 and get yourself on the path to a secure financial future, today.

Dane Jansen
Dane is a Managing Partner/Responsible Manager at Positive Dynamics. He embraces his leadership skills to provide guidance to his clients giving them the confidence and conviction to achieve financial success.
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